29 June 2008

KUALA LUMPUR: Cuepacs wants a RM500 cost of living allowance (Cola) for all civil servants.

Its president Omar Osman, said yesterday that the allowance was needed to cope with increased costs across the board after the price of fuel went up by 40 per cent last month.

"The cost of living has gone up too much. We want the government to introduce a Cola of RM500 a month irrespective of where the civil servants live. This is the best way to handle the increase in living costs," he said after a meeting with members at Wisma Cuepacs yesterday.

Civil servants currently receive Cola of between RM100 and RM300, depending on where they work.

Omar said although Cuepacs did not agree with the suggestion to pay monthly salaries in two instalments, the congress welcomed the payment of salaries once every two weeks as this would mean they would be paid for 52 weeks of work per year and not 48 weeks as is the current practice.

He said this would mean that they would benefit from four extra weeks of work which translated into the proverbial 14th month salary (civil servants already receive a 13th month salary).

Omar said Cuepacs also disapproved of any suggestion to reduce the EPF contribution of some 40,000 civil servants who were not on the pension scheme.

This follows suggestions by some quarters to reduce the EPF contribution from 11 per cent to seven per cent per month.

"If the EPF contribution is to be reduced, then a gratuity should be introduced, as well as free medical coverage for life."

Omar regretted the fact that Cuepacs had not been consulted before the price of fuel was raised.

On the suggestion to allow civil servants to work part-time to make ends meet, Omar said wages were low due to the abundance of cheap foreign labour.

"These foreigners should be sent back before civil servants can work part-time."